Effect of bond issuance on bank market value: A study in Istanbul stock exchange

In our country activities like stock market have been started since 1866 in Ottoman Period. The term of bond in the beginning used to get rid of dept for country. İn our coutry was issued bond as a dept instrument and it emerged enviably to Western Country. Nowadays bond is one of the most used security issuance and bond has been used generally by private sector firms since 2005. Recently, the highest trading size securities in the market equity shares and bonds. This study is dealt with bond issues which is analyzed to bond issues effect of firms market value or not by event study method. Bond issues are expected to effect on firm market value when we take into account the firm issue size, bond maturity, interest rate and currency, firm size and type of bond. This effect is usually measured by Abnormal Return (AR) in event Windows and in the several different event windows is measured by Cumalative Abnormal Return (CAR). The results indicate that these firm bonds by individually produce AR, but the aggregation by several criteria don't exhibit a strong effect. Firms market value will be analyzed by the method of event study. In this event study is take into account to the ratio of issues sizes to total asset of the firms while acquiring pozitive and negative Abnormal Return (AR) in the large amount issue, It no usually found in the small amount issue. At the same time, date of first issue of the firms was obtained positive Cumulative Abnormal Return (CAR). Key words: Bond Issue, Bank Market Value, Event Study, Stock Market